Global investment in spot bitcoin exchange-traded funds (ETFs) has reached $4.16 billion, marking a significant shift in the cryptocurrency market, according to recent data from CoinGecko. The primary markets for these funds are Canada and Europe, with Canada leading the way with seven bitcoin ETFs totaling $2 billion. Of these, the Purpose Bitcoin ETF is the largest globally with $819.1 million in assets.
Germany is not far behind with the second largest globally traded bitcoin fund – the ETC Group Physical Bitcoin, valued at $802 million, demonstrating Europe’s flexible regulatory approach to cryptocurrencies. G20 members including Canada, Germany, Brazil and Australia are among the eight countries that have approved bitcoin ETFs. Several tax havens such as Jersey, Liechtenstein, Guernsey and the Cayman Islands also offer spot bitcoin ETFs, contributing significantly to Europe’s crypto-friendly climate.
While the U.S. has remained cautious due to concerns about market manipulation and cryptocurrency fraud, it currently only approves ETFs linked to bitcoin futures contracts. However, this could change if the Securities and Exchange Commission (SEC) approves up to 10 pending spot bitcoin ETF applications in the country.
The approval of these ETFs could result in an estimated $155 billion flowing into the bitcoin market due to increased demand. If firms allocate just 1% of their assets under management (AUM) to bitcoin ETFs, this would represent nearly one-third of bitcoin’s current market capitalization. Such a development could mark a significant turning point for cryptocurrencies by opening up new market opportunities.
